CBA withdraws 50,000 old banknotes from circulation in 2011
Azerbaijan, Baku, April 25 /Trend A.Akhundov/
The Central Bank of Azerbaijan (CBA) has withdrawn from circulation and exchanged unusable banknotes worth 1.4 million manat (approximately 50,000 units) in 2011, the ministry of Taxesb said on Wednesday.
The central bank automatically processes and sorts out-of-treatment banknotes.
Banknotes, unsuitable for further use are abolished by the working group of the special state commission.
As a result of the currency denomination [a full transition to a new scale of prices took place in 2007] carried out by the CBA, the complete replacement of old banknotes with new completed before December 31, 2006. Only new banknotes have been used in Azerbaijan since 2007, which prevented the difficulties that might arise with regard to the treatment of 19 denominations simultaneously.
The total amount of money ordered worth 1.7 billion manat considering stocks for three years. Some 94 percent of the total amount of money accounts for banknotes (1,5, 10,20, 50 and 100 manat) and six percent - metal coins (1,3,5,10,20 and 50 gapiks).
Use terms of banknotes account for 3-5 years, the coins - 20 years. Today most freqently used are 1 manat and 5 manat banknotes. Their life cycle is 1.5-2 years, as they are rapidly deformed with regard to the most frequent use. Therefore, the possibility of replacing them with metal money was considered in due time to reduce the cost of CBA.
Official exchange rate on April 25 is 0.7861 AZN/USD